4 June 2013 – update
The company has made an announcement to correct market speculation that its cash pile may have been eroded. It expects positive EBITDA in the second quarter and that net cash will be in excess of £10m at that time. The company is in the somewhat unenviable position of having to decide whether to respond to the stream of negative commentary being put forward by some observers. We would advise readers to concentrate on the facts rather than speculation and at the current share price the potential upside is considerable. Nevertheless volatility is likely to continue in the near term, particularly with the ex-dividend date being 5 June, so we keep our HOLD rating.